AKBANK T.A.Ş. PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED DISCLOSURES AT 30 SEPTEMBER 2015 TOGETHER WITH LIMITED REVIEW REPORT

Transcription

1 PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED DISCLOSURES AT 30 SEPTEMBER 2015 TOGETHER WITH LIMITED REVIEW REPORT (Convenience translation of publicly announced consolidated financial statements, related disclosures and limited review report originally issued in Turkish, See Note. I.b of Section three)

2 INTERIM REVIEW REPORT ON INTERIM FINANCIAL INFORMATION (Convenience translation of the independent auditor s report originally issued in Turkish, See Note I.b of Section three) To the Board of Directors of Akbank T.A.Ş.; Introduction We have reviewed the consolidated balance sheet of Akbank T.A.Ş. ( the Bank ) and its subsidiaries (together will be referred as the Group ) at and the related consolidated income statement, consolidated statement of income and expense items under shareholders equity, consolidated statement of changes in shareholders equity, consolidated statement of cash flows and a summary of significant accounting policies and other explanatory notes to the consolidated financial statements for the nine-month-period then ended. The Bank Management is responsible for the preparation and fair presentation of interim financial statements in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents published in the Official Gazette no dated 1 November 2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision Agency and circulars and interpretations published by Banking Regulation and Supervision Authority, (together referred as BRSA Accounting and Reporting Legislation) and Turkish Accounting Standard 34 Interim Financial Reporting except for the matters regulated by BRSA Legislation. Our responsibility is to express a conclusion on these interim financial statements based on our review. Scope of Review We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, Limited Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial reporting process, and applying analytical and other review procedures. A review of interim financial information is substantially less in scope than an independent audit performed in accordance with the Independent Auditing Standards of Turkey and the objective of which is to express an opinion on the financial statements. Consequently, a review of the interim financial information does not provide assurance that the audit firm will be aware of all significant matters which would have been identified in an audit. Accordingly, we do not express an opinion. Basis of Qualified Conclusion Subsequent to the reversal of TL thousands during the year 2014, the accompanying consolidated financial statements as at include a general reserve amounting to TL thousands which is fully provided in 2013 by the Bank management for the possible results of the circumstances which may arise from any changes in the economy and market conditions. Qualified Conclusion Based on our review, except for the effect of the matter referred in the basis of qualified conclusion on the consolidated financial statements, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not give a true and fair view of the financial position of Akbank T.A.Ş. and its subsidiaries at and of the results of its operations and its cash flows for the nine-month-period then ended in all aspects in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents published in the Official Gazette no dated 1 November 2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision Agency and circulars and interpretations published by Banking Regulation and Supervision Authority, (together referred as BRSA Accounting and Reporting Legislation) and Turkish Accounting Standard 34 Interim Financial Reporting except for the matters regulated by BRSA Legislation. Additional paragraph for convenience translation to English: As explained in detail in Note I.b. of Section Three, the effects of differences between accounting principles and standards set out by regulations in conformity with BRSA Accounting and Reporting Legislation) and Turkish Accounting Standard 34 Interim Financial Reporting except for the matters regulated by BRSA Legislation, accounting principles generally accepted in countries in which the accompanying consolidated financial statements are to be distributed and International Financial Reporting Standards ( IFRS ) have not been quantified in the accompanying consolidated financial statements. Accordingly, the accompanying consolidated financial statements are not intended to present the financial position, results of operations and changes in financial position and cash flows in accordance with the accounting principles generally accepted in such countries and IFRS. Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst&Young Global Limited Damla Harman SMMM, Partner İstanbul, 26 October 2015

3 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS, RELATED DISCLOSURES ORIGINALLY ISSUED IN TURKISH, SEE NOTE I.b IN SECTION THREE THE CONSOLIDATED FINANCIAL REPORT OF AS OF 30 SEPTEMBER 2015 Address : Sabancı Center 34330, 4. Levent / İstanbul Telephone : (0 212) Fax : (0 212) Website : The consolidated financial report includes the following sections in accordance with the Communiqué on the Financial Statements and Related Explanation and Notes that will be Publicly Announced as sanctioned by the Banking Regulation and Supervision Agency. Section One - GENERAL INFORMATION ABOUT THE GROUP Section Two - CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP Section Three - EXPLANATIONS ON ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD Section Four - INFORMATION RELATED TO FINANCIAL POSITION OF THE GROUP Section Five - EXPLANATIONS AND NOTES RELATED TO CONSOLIDATED FINANCIAL STATEMENTS Section Six - OTHER EXPLANATIONS Section Seven - LIMITED REVIEW REPORT Investments in associates, joint ventures and subsidiaries whose financial statements have been consolidated in this reporting package are as follows: Subsidiaries Investments in Associates Joint Ventures 1. Ak Finansal Kiralama A.Ş Ak Yatırım Menkul Değerler A.Ş Ak Portföy Yönetimi A.Ş Akbank AG Akbank (Dubai) Limited - - Ak Receivables Corporation and A.R.T.S. Ltd., which are not subsidiaries of the Bank but over which the Bank has 100% controlling power, have been included in the consolidation due to the reason that these companies are Structured Entities. The accompanying reviewed consolidated financial statements and notes to these financial statements which are expressed, unless otherwise stated, in thousands of Turkish Lira (TL), have been prepared based on the accounting books of the Bank in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, related appendices and interpretations on these, and are independently reviewed. 26 October 2015 Suzan SABANCI DİNÇER Hayri ÇULHACI Ş.Yaman TÖRÜNER S. Hakan BİNBAŞGİL K. Atıl ÖZUS Türker TUNALI Chairman of the Head of the Member of the CEO Executive Vice Senior Vice Board of Directors Audit Committee Audit President President Committee Contact information of the personnel in charge of addressing questions regarding this financial report: Name-Surname / Title : Türker TUNALI / Senior Vice President Phone No : (0 212) Fax No : (0 212)

4 Page: SECTION ONE General Information about the Group I. Parent Bank s foundation date, start-up status, history regarding the changes in this status 1 II. Explanation about the Parent Bank s capital structure and shareholders of the Parent Bank who are in charge of the management and/or auditing of the Parent Bank directly or indirectly, changes in these matters (if any) and the group the Parent Bank belongs to 1 III. Explanation on the board of directors, members of the audit committee, president and executive vice presidents, if available, and the shares of the Parent Bank they possess and their areas of responsibility 1 IV. Information on shareholder s having control shares 2 V. Explanations on the Parent Bank s service types and fields of operation 2 VI. A Short Explanation on the differences between the Communique on Consolidated Financial Statement Reporting and the consolidation procedures required by Turkish Accounting Standards and about institutions that are subject to full consolidation, proportional consolidation, by way of deduction from capital or those that are subject to none 2 VII. Existing or potential, actual or legal obstacles to immediate transfer of capital between Parent Bank and its subsidiaries and repayment of debts 2 SECTION TWO Consolidated Financial Statements of the Group I. Balance sheet 3 II. Income statement 5 III. Off-Balance Sheet Commitments 6 IV. Income and expenses accounted under shareholders equity 7 V. Statement of changes in shareholders equity 8 VI. Statement of cash flows 9 SECTION THREE Accounting Policies I. Explanations on basis of presentation 10 II. Explanations on strategy of using financial instruments and explanations on foreign currency transactions 11 III. Explanations on investments in associates and subsidiaries 11 IV. Explanations on forward transactions and derivative instruments 12 V. Explanations on interest income and expense 13 VI. Explanations on fee and commission income and expenses 13 VII. Explanations on financial assets 13 VIII. Explanations on impairment of financial assets 14 IX. Explanations on offsetting financial assets 14 X. Explanations on sales and repurchase agreements and securities lending transactions 15 XI. Explanations on property and equipment held for sale purpose and related to discontinued operations 15 XII. Explanations on goodwill and other intangible assets 15 XIII. Explanations on property and equipment 15 XIV. Explanations on leasing transactions 16 XV. Explanations on provisions and contingent liabilities 16 XVI. Explanations on contingent assets 16 XVII. Explanations on obligations related to employee rights 16 XVIII. Explanations on taxation 18 XIX. Explanations on borrowings 19 XX. Explanations on issuance of share certificates 19 XXI. Explanations on avalized drafts and acceptances 19 XXII. Explanations on government grants 19 XXIII. Explanations on segment reporting 19 XXIV. Profit reserves and profit appropriation 19 XXV. Earnings per share 20 XXVI. Related parties 20 XXVII. Cash and cash equivalent assets 20 XXVIII. Reclassifications 20 SECTION FOUR Information Related to Financial Position of the Group I. Explanations on capital adequacy ratio 21 II. Explanations on credit risk 25 III. Explanations on market risk 25 IV. Explanations on currency risk 26 V. Explanations on interest rate risk 27 VI. Explanations on equity securities position risk derived from banking books 31 VII. Explanations on liquidity risk 31 VIII. Explanations on securitization positions 32 IX. Explanations on credit risk mitigation techniques 32 X. Explanations on risk management target and policies 32 XI. Explanations on the activities carried out on behalf and account of other persons 33 XII. Explanations on hedge transactions 33 XIII. Explanations on business segments 35 SECTION FIVE Information and Disclosures Related to Consolidated Financial Statements I. Explanations and notes related to consolidated assets 37 II. Explanations and notes related to consolidated liabilities 52 III. Explanations and notes related to consolidated income statement 59 IV. Explanations and notes related to consolidated off-balance sheet accounts 65 V. Explanations and notes related to consolidated statement of cash flows 66 VI. Explanations and notes related to Group s risk group 67 VII. Explanations and notes related to subsequent events 68 SECTION SIX Other Explanations I. Other explanations 69 SECTION SEVEN Explanations on Auditor s Report I. Explanations on auditor s report 69 II. Explanations and notes prepared by independent auditor 69

5 SECTION ONE GENERAL INFORMATION ABOUT THE BANK I. BANK S FOUNDATION DATE, START-UP STATUS, HISTORY REGARDING THE CHANGES IN THIS STATUS: Akbank T.A.Ş. ( the Bank or Akbank ) was established on 30 January 1948 as a private commercial bank, in accordance with the decision of the Council of Ministers, No.3/6710 and is authorized to perform all economic, financial and commercial activities which are allowed by the laws of the Turkish Republic ( T.C. ). The status of the Bank has not changed since its foundation. II. EXPLANATION ABOUT THE BANK S CAPITAL STRUCTURE, SHAREHOLDERS OF THE BANK WHO ARE IN CHARGE OF THE MANAGEMENT AND/OR AUDITING OF THE BANK DIRECTLY OR INDIRECTLY, CHANGES IN THESE MATTERS (IF ANY) AND THE GROUP THE BANK BELONGS TO: The Bank s shares have been quoted on the Borsa Istanbul ( BIST ) since In 1998, 4,03% of the outstanding share capital of the Bank was offered and sold in an international offering outside of Turkey in the form of Ordinary Shares and American Depository Receipts ( ADRs ). As of, approximately 51% of the shares are publicly traded, including the ADRs (: 41%). The major shareholder of the Bank, directly or indirectly, is Sabancı Group. III. EXPLANATION ON THE BOARD OF DIRECTORS, MEMBERS OF THE AUDIT COMMITTEE, PRESIDENT AND EXECUTIVE VICE PRESIDENTS, IF AVAILABLE, SHARES OF THE PARENT BANK THEY POSSESS AND THEIR AREAS OF RESPONSIBILITY: Title Name Responsibility Education Chairman: Suzan SABANCI DİNÇER Chairman and Executive Board Member Graduate Honorary Chairman, Board Member, Consultant: Erol SABANCI Honorary Chairman, Board Member and Consultant Undergraduate Board of Directors: Hayri ÇULHACI Vice Chairman and Executive Board Member Graduate Cem MENGİ Executive Board Member Undergraduate Ş. Yaman TÖRÜNER Board Member Undergraduate A. Aykut DEMİRAY Board Member Undergraduate I. Aydın GÜNTER Board Member Undergraduate Emre DERMAN Board Member Graduate Can PAKER Board Member PhD S. Hakan BİNBAŞGİL Board Member and CEO Graduate President and CEO: S. Hakan BİNBAŞGİL CEO Graduate Head of Internal Audit: Eyüp ENGİN Head of Internal Audit Undergraduate Executive Vice Presidents: A. Fuat AYLA Credit Allocation Undergraduate K. Atıl ÖZUS Financial Coordination Undergraduate Kerim ROTA Treasury Graduate C. Kaan GÜR Commercial Banking Undergraduate Turgut GÜNEY Technology and Operation Graduate Orkun OĞUZ Direct Banking Graduate Bülent OĞUZ SME Banking Graduate H.Burcu CİVELEK YÜCE Human Resources and Strategy Graduate Ege GÜLTEKİN Credit Monitoring and Follow-up Graduate A.Özer İSFENDİYAROĞLU Consumer and Private Banking Graduate Levent ÇELEBİOĞLU Corporate and Investment Banking Undergraduate Hayri ÇULHACI Head of the Audit Committee Graduate Internal Audit Committee: Ş. Yaman TÖRÜNER Member of the Audit Committee Undergraduate The shares of the above individuals are insignificant in the Bank. As of 13 February 2015, Ege Gültekin has been assigned as Executive Vice President responsible from the newly established Credit Monitoring and Follow up Unit. As of 2 March 2015, Arif Özer İsfendiyaroğlu has been assigned as Executive Vice President responsible from the newly established Retail Banking and Payment Systems Unit. 1

6 During The Ordinary General Assembly Meeting of the Bank dated 26 March 2015, Emre Derman and Can Paker have been appointed as a Board Member in lieu of James Charles Cowles and M. Kaan Terzioğlu in the election of new Board of Directors. As of 8 May 2015, Corporate Banking Unit s Executive Vice President Alper Hakan Yüksel has resigned from his position. Corporate Banking Unit is continuing its operations as Corporate and Investment Banking and Levent Çelebioğlu has been appointed as the new established Unit s Executive Vice President as of the same date. As of 30 June 2015, Corporate Communication Unit s Executive Vice President Mehmet Sindel and Private Banking Unit s Executive Vice President Saltık Galatalı have resigned from their positions. Consumer Banking and Payment Systems Unit has merged with Private Banking Unit and Corporate Communications Unit and is continuing its operations as Consumer and Private Banking Unit as of the same date. As of, 31 July 2015, International Banking Unit s Executive Vice President Hülya Kefeli has resigned from her position. International Banking Unit has merged with Treasury Unit as of the same date. As of 28 August 2015, Operation Unit s Executive Vice President Özlen Sanıbelli has resigned from her position. Information Technologies Unit has merged with Operation Unit and is continuing its operations as Technology and Operation Unit as of the same date. IV. INFORMATION ON SHAREHOLDERS HAVING CONTROL SHARES: Name/Commercial Title Share Amounts (Nominal) Share Percentages Paid-in Capital (Nominal) Unpaid Portion Hacı Ömer Sabancı Holding A.Ş % 40, V. EXPLANATION ON THE PARENT BANK S SERVICE TYPES AND FIELDS OF OPERATION: The Bank s core business activities include retail and private banking, commercial banking, SME banking, corporate and investment banking,foreign exchange, money markets, securities transactions (treasury transactions) and international banking services. In addition to regular banking operations, the Bank also provides insurance intermediary services as an agency of Aksigorta A.Ş and AvivaSA Emeklilik ve Hayat A.Ş. As of, the Bank has 912 branches dispersed throughout the country and 1 branch operating abroad (: 990 branches and 1 branch operating abroad). As of 30 September 2015, the Bank employed people (: ). Decrease in the Bank s personnel is caused by the transfer of private security guards to an outsource firm. The Parent Bank and its subsidiaries, Ak Yatırım Menkul Değerler A.Ş., AK Portföy Yönetimi A.Ş., Akbank AG, Ak Finansal Kiralama A.Ş., Akbank (Dubai) Limited and together with Ak Receivables Corporation and A.R.T.S. Ltd., which are not subsidiaries of the Bank, but over which the Bank has 100% controlling power due to the reason that these companies are Structured Entities, have been included in the scope of consolidation. The Parent Bank together with its consolidated subsidiaries are referred to as the Group in these consolidated financial statements and notes to consolidated financial statements. As at, the Group employed people (: ). VI. A SHORT EXPLANATION ON THE DIFFERENCES BETWEEN THE COMMUNIQUE ON CONSOLIDATED FINANCIAL STATEMENT REPORTING AND THE CONSOLIDATION PROCEDURES REQUIRED BY TURKISH ACCOUNTING STANDARDS AND ABOUT INSTITUTIONS THAT ARE SUBJECT TO FULL CONSOLIDATION, PROPORTIONAL CONSOLIDATION, BY WAY OF DEDUCTION FROM CAPITAL OR THOSE THAT ARE SUBJECT TO NONE: The Bank sees no difference between the Communiqué on Consolidated Financial Reporting and the consolidation procedures required by Turkish Accounting Standards. Information in regards to consolidated subsidiaries and consolidation methods are given in Section 3 Note III. VII. EXISTING OR POTENTIAL, ACTUAL OR LEGAL OBSTACLES TO IMMEDIATE TRANSFER OF CAPITAL BETWEEN PARENT BANK AND ITS SUBSIDIARIES AND REPAYMENT OF DEBTS: None 2

7 I. CONSOLIDATED BALANCE SHEET AS OF 30 SEPTEMBER 2015 (STATEMENT OF FINANCIAL POSITION) (Amounts are expressed in thousands of Turkish Lira (TL)). CURRENT PERIOD PRIOR PERIOD ASSETS Note (30/09/2015) (31/12/2014) (Section Five) TL FC Total TL FC Total I. CASH AND BALANCES WITH CENTRAL BANK (I-a) II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT or LOSS (Net) (I-b) Trading Financial Assets Government Debt Securities Equity Securities Trading Derivative Financial Assets Other Marketable Securities Financial Assets at Fair Value through Profit or Loss Government Debt Securities Equity Securities Loans Other Marketable Securities III. BANKS (I-c) IV. MONEY MARKETS Interbank Money Market Placements Istanbul Stock Exchange Money Market Placements Receivables from Reverse Repurchase Agreements V. AVAILABLE-FOR-SALE FINANCIAL ASSETS (Net) (I-d) Equity Securities Government Debt Securities Other Marketable Securities VI. LOANS and RECEIVABLES (I-e) Loans and Receivables Loans to Bank's Risk Group (VI) Government Debt Securities Other Loans under Follow-up Specific Provisions (-) VII. FACTORING RECEIVABLES VIII. HELD-TO-MATURITY SECURITIES (Net) (I-f) Government Debt Securities Other Marketable Securities IX. INVESTMENTS IN ASSOCIATES (Net) (I-g) Associates Consolidated Based on Equity Method Associates Unconsolidated Financial Investments in Associates Non-Financial Investments in Associates X. SUBSIDIARIES (Net) (I-h) Unconsolidated Financial Subsidiaries Unconsolidated Non-Financial Subsidiaries XI. JOINT VENTURES (Net) Joint Ventures Consolidated Based on Equity Method Unconsolidated Joint Ventures Financial Joint Ventures Non-Financial Joint Ventures XII. FINANCIAL LEASE RECEIVABLES (Net) (I-i) Financial Lease Receivables Operating Lease Receivables Other Unearned Income ( - ) XIII. HEDGING DERIVATIVE FINANCIAL ASSETS (I-j) Fair Value Hedge Cash Flow Hedge Foreign Net Investment Hedge XIV. PROPERTY AND EQUIPMENT (Net) XV. INTANGIBLE ASSETS (Net) Goodwill Other XVI. INVESTMENT PROPERTY (Net) (I-k) XVII. TAX ASSET Current Tax Asset Deferred Tax Asset (I-l) XVIII. PROPERTY AND EQUIPMENT HELD FOR SALE PURPOSE AND RELATED TO DISCONTINUED OPERATIONS (Net) (I-m) Held for Sale Purpose Related to Discontinued Operations XIX. OTHER ASSETS (I-n) TOTAL ASSETS The accompanying explanations and notes form an integral part of these financial statements. 3

8 I. CONSOLIDATED BALANCE SHEET AS OF 30 SEPTEMBER 2015 (STATEMENT OF FINANCIAL POSITION) (Amounts are expressed in thousands of Turkish Lira (TL)). CURRENT PERIOD PRIOR PERIOD LIABILITIES Note (30/09/2015) (31/12/2014) (Section Five) TL FC Total TL FC Total I. DEPOSITS (II-a) Deposits of Bank's Risk Group (VI) Other II. TRADING DERIVATIVE FINANCIAL LIABILITIES (II-b) III. FUNDS BORROWED (II-c) IV. MONEY MARKETS Funds from Interbank Money Market Funds from Istanbul Stock Exchange Money Market Funds Provided Under Repurchase Agreements V. SECURITIES ISSUED (Net) (II-d) Bills Asset Backed Securities Bonds VI. FUNDS Borrower Funds Other VII. MISCELLANEOUS PAYABLES VIII. OTHER LIABILITIES (II-e) IX. FACTORING PAYABLES X. FINANCIAL LEASE PAYABLES (Net) (II-f) Financial Lease Payables Operating Lease Payables Other Deferred Financial Lease Expenses ( - ) XI. HEDGING DERIVATIVE FINANCIAL LIABILITIES (II-g) Fair Value Hedge Cash Flow Hedge Foreign Net Investment Hedge XII. PROVISIONS (II-h) General Loan Loss Provisions Restructuring Provisions Reserve for Employee Benefits Insurance Technical Provisions (Net) Other Provisions XIII. TAX LIABILITY (II-i) Current Tax Liability Deferred Tax Liability XIV. LIABILITIES FOR PROPERTY AND EQUIPMENT HELD FOR SALE AND RELATED TO DISCONTINUED OPERATIONS Held for Sale Purpose Related to Discontinued Operations XV. SUBORDINATED LOANS XVI. SHAREHOLDERS' EQUITY (II-j) ( ) ( ) Paid-in capital Capital Reserves ( ) ( ) Share Premium Share Cancellation Profits Marketable Securities Valuation Differences (II-k) ( ) ( ) ( ) ( ) (88.432) ( ) Property and Equipment Revaluation Differences Intangible Assets Revaluation Differences Investment Properties Revaluation Differences Bonus Shares from Investments in Associates, Subsidiaries and Joint Ventures Hedging Funds (Effective portion) ( ) (26.000) ( ) ( ) (29.398) ( ) Value Increase of Assets Held for Sale Other Capital Reserves Profit Reserves Legal Reserves Status Reserves Extraordinary Reserves Other Profit Reserves Income or (Loss) s' Income or (Loss) Current Year Income or (Loss) Minority Interest TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompanying explanations and notes form an integral part of these financial statements. 4

9 II. CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2015 (Amounts are expressed in thousands of Turkish Lira (TL)). INCOME AND EXPENSE ITEMS Note CURRENT PERIOD PRIOR PERIOD CURRENT PERIOD PRIOR PERIOD (Section Five) (01/01-30/09/2015) (01/01-30/09/2014) (01/07-30/09/2015) (01/07-30/09/2014) I. INTEREST INCOME (III-a) Interest on Loans (III-a-1) Interest on Reserve Requirements Interest on Banks (III-a-2) Interest on Money Market Transactions Interest on Marketable Securities Portfolio (III-a-3) Trading Financial Assets Financial Assets at Fair Value Through Profit or Loss Available-for-sale Financial Assets Held- to- maturity Investments Financial Lease Income Other Interest Income II. INTEREST EXPENSE (III-b) Interest on Deposits (III-b-4) Interest on Funds Borrowed (III-b-1) Interest Expense on Money Market Transactions Interest on Securities Issued (III-b-3) Other Interest Expenses III. NET INTEREST INCOME (I - II) IV. NET FEES AND COMMISSIONS INCOME Fees and Commissions Received Non-cash Loans Other Fees and Commissions Paid Non-cash Loans Other V. DIVIDEND INCOME VI. TRADING INCOME/(LOSS) (Net) (III-c) ( ) (1.223) Trading Gains / (Losses) on Securities (8.841) Gains / (Losses) on Derivative Financial Transactions (6.564) ( ) Foreign Exchange Gains / (Losses) ( ) ( ) ( ) VII. OTHER OPERATING INCOME (III-d) VIII. TOTAL OPERATING INCOME (III+IV+V+VI+VII) IX. PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-) (III-e) X. OTHER OPERATING EXPENSES (-) (III-f) XI. NET OPERATING INCOME/(LOSS) (VIII-IX-X) XII. EXCESS AMOUNT RECORDED AS INCOME AFTER MERGER XIII. INCOME/(LOSS) FROM INVESTMENTS IN SUBSIDIARIES CONSOLIDATED BASED ON EQUITY METHOD XIV. INCOME/(LOSS) ON NET MONETARY POSITION XV. PROFIT/LOSS BEFORE TAX FROM CONTINUED OPERATIONS (XI+...+XIV) XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±) (III-h) Current Tax Provision Deferred Tax Provision ( ) XVII. CURRENT PERIOD PROFIT/LOSS FROM CONTINUED OPERATIONS (XV±XVI) XVIII. INCOME FROM DISCONTINUED OPERATIONS Income from Non-current Assets Held for Sale Profit from Sales of Associates, Subsidiaries and Joint Ventures Income from Other Discontinued Operations XIX. EXPENSES FOR DISCONTINUED OPERATIONS (-) Expenses for Non-current Assets Held for Sale Loss from Sales of Associates, Subsidiaries and Joint Ventures Expenses for Other Discontinued Operations XX. PROFIT/LOSS BEFORE TAX FROM DISCONTINUED OPERATIONS (XVIII-XIX) XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) Current Tax Provision Deferred Tax Provision XXII. CURRENT YEAR PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI) XXIII. NET INCOME/(LOSS) (XVII+XXII) (III-i) Income/(Loss) from the Group Income/(Loss) from Minority Interest (III-g) Earning/(Loss) per share (in TL full) 0, , , ,00201 The accompanying explanations and notes form an integral part of these financial statements. 5

10 III. CONSOLIDATED OFF-BALANCE SHEET COMMITMENTS AS OF 30 SEPTEMBER 2015 (Amounts are expressed in thousands of Turkish Lira (TL)). CURRENT PERIOD PRIOR PERIOD Note (30/09/2015) (31/12/2014) (Section Five) TL FC Total TL FC Total A. OFF-BALANCE SHEET COMMITMENTS (I+II+III) I. GUARANTEES AND WARRANTIES (IV-2, 3) Letters of Guarantee Guarantees Subject to State Tender Law Guarantees Given for Foreign Trade Operations Other Letters of Guarantee Bank Acceptances Import Letter of Acceptance Other Bank Acceptances Letters of Credit Documentary Letters of Credit Other Letters of Credit Prefinancing Given as Guarantee Endorsements Endorsements to the Central Bank of Turkey Other Endorsements Purchase Guarantees for Securities Issued Factoring Guarantees Other Guarantees Other Collaterals II. COMMITMENTS (IV-1) Irrevocable Commitments Asset Purchase Commitments Deposit Purchase and Sales Commitments Share Capital Commitments to Associates and Subsidiaries Loan Granting Commitments Securities Issue Brokerage Commitments Commitments for Reserve Requirements Commitments for Cheque Payments Tax and Fund Liabilities from Export Commitments Commitments for Credit Card Limits Commitments for Credit Cards and Banking Services Promotions Receivables from Short Sale Commitments of Marketable Securities Payables for Short Sale Commitments of Marketable Securities Other Irrevocable Commitments Revocable Commitments Revocable Loan Granting Commitments Other Revocable Commitments III. DERIVATIVE FINANCIAL INSTRUMENTS Hedging Derivative Financial Instruments Fair Value Hedges Cash Flow Hedges Foreign Net Investment Hedges Trading Derivative Financial Instruments Forward Foreign Currency Buy/Sell Transactions Forward Foreign Currency Transactions-Buy Forward Foreign Currency Transactions-Sell Swap Transactions Related to Foreign Currency and Interest Rates Foreign Currency Swap-Buy Foreign Currency Swap-Sell Interest Rate Swap-Buy Interest Rate Swap-Sell Foreign Currency, Interest Rate and Securities Options Foreign Currency Options-Buy Foreign Currency Options-Sell Interest Rate Options-Buy Interest Rate Options-Sell Securities Options-Buy Securities Options-Sell Foreign Currency Futures Foreign Currency Futures-Buy Foreign Currency Futures-Sell Interest Rate Futures Interest Rate Futures-Buy Interest Rate Futures-Sell Other B. CUSTODY AND PLEDGES RECEIVED (IV+V+VI) IV. ITEMS HELD IN CUSTODY Customer Fund and Portfolio Balances Investment Securities Held in Custody Cheques Received for Collection Commercial Notes Received for Collection Other Assets Received for Collection Assets Received for Public Offering Other Items Under Custody Custodians V. PLEDGES RECEIVED Marketable Securities Guarantee Notes Commodity Warranty Immovables Other Pledged Items Pledged Items-Depository VI. ACCEPTED BILL, GUARANTEES AND WARRANTEES TOTAL OFF-BALANCE SHEET COMMITMENTS (A+B) The accompanying explanations and notes form an integral part of these financial statements. 6

11 IV. CONSOLIDATED STATEMENT OF INCOME AND EXPENSES ACCOUNTED UNDER SHAREHOLDERS' EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2015 (Amounts are expressed in thousands of Turkish Lira (TL)). INCOME AND EXPENSES ACCOUNTED UNDER SHAREHOLDERS' EQUITY CURRENT PERIOD PRIOR PERIOD (30/09/2015) (30/09/2014) I. ADDITIONS TO MARKETABLE SECURITIES VALUATION DIFFERENCES FROM AVAILABLE- FOR- SALE FINANCIAL ASSETS ( ) II. PROPERTY AND EQUIPMENT REVALUATION DIFFERENCES - - III. INTANGIBLE ASSETS REVALUATION DIFFERENCES - - IV. TRANSLATION DIFFERENCES FROM FOREIGN CURRENCY TRANSACTIONS (22.447) V. PROFIT/LOSS FROM CASH FLOW HEDGE DERIVATIVE FINANCIAL ASSETS (Effective Portion) VI. PROFIT/LOSS FROM FOREIGN NET INVESTMENT HEDGE DERIVATIVE FINANCIAL ASSETS (Effective Portion) (*) ( ) VII. EFFECTS OF CHANGES IN ACCOUNTING POLICY AND CORRECTIONS - - VIII. OTHER INCOME/EXPENSE ACCOUNTED UNDER SHAREHOLDERS' EQUITY AS PER TAS - IX. TAX RELATED TO VALUATION DIFFERENCES ( ) X. NET INCOME/EXPENSE DIRECTLY ACCOUNTED UNDER SHAREHOLDERS' EQUITY (I+II+ +IX) ( ) XI. CURRENT PERIOD INCOME / LOSS Net Change in Fair Value of Marketable Securities (Transfer to Profit/Loss) Part of Cash Flow Hedge Derivative Financial Assets Reclassified and Presented on the Income Statement (19.633) (20.188) 11.3 Part of Foreign Net Investment Hedge Derivative Financial Assets Reclassified and Presented on the Income Statement Other XII. TOTAL INCOME / LOSS ACCOUNTED FOR THE PERIOD (X±XI) (*) Figure represents the effective part of the foreign exchange differences of the financial liabilities hedging the net investment risk of foreign investments as explained in Note II of Section Three. İlişikteki açıklama ve dipnotlar bu finansal tabloların tamamlayıcı bir parçasıdır 7

12 V. CONSOLIDATED STATEMENT OF CHANGES IN THE SHAREHOLDERS' EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2015 (Amounts are expressed in thousands of Turkish Lira (TL)). Bonus Shares from Invest. in Ass., Subs. and J.V. Share Cancellation Profits Net Income (Loss) Marketable Securities Value Increase Fund Val. Chan. in Prop. Total Equity and Eq. HFS Purp./ Except from Disc. Opr. Minority Interest Note (Section Five) Adjustment to Share Capital(*) Share Premiums Status Reserves Extraordinary Reserves Other Reserves Net Income (Loss) Hedging Transactions Paid-in Capital Legal Reserves Revaluation Fund Total Shareholders' Minority Interest Equity PRIOR PERIOD (30/09/2014) I. Begining Balance ( ) ( ) II. Corrections and Accounting Policy Changes Made According to TAS Effects of Corrections Effects of the Changes in Accounting Policies III. Adjusted Beginning Balance (I+II) (II-j) ( ) ( ) Changes in the period IV. Increase/Decrease due to Mergers V. Marketable Securities Valuation Differences VI. Hedging Transactions Cash Flow Hedge Foreign Net Investment Hedge VII. Property and Equipment Revaluation Differences VIII. Intangible Assets Revaluation Differences IX. Bonus Shares from Investments in Associates, Subsidiaries and Joint Ventures X. Translation Differences (22.447) (22.447) - (22.447) XI. Changes due to the Disposal of Assets XII. Changes due to the Reclassification of Assets XIII. Effects of Changes in Equity of Investments in Associates XIV. Capital Increase Cash Increase Internal Resources XV. Share Issuance XVI. Share Cancellation Profits XVII. Paid-in Capital Inflation Adjustment Difference XVIII. Other XIX. Current Year Income or (Loss) XX. Profit distribution ( ) ( ) - ( ) 20.1 Dividends paid ( ) ( ) - ( ) 20.2 Transfers to Reserves ( ) Other Ending Balance (III+IV+V+ +XVIII+XIX+XX) ( ) ( ) CURRENT PERIOD (30/09/2015) I. End Balance ( ) ( ) Changes in the period II. Increase/Decrease due to Mergers III. Marketable Securities Valuation Differences (II-k) ( ) ( ) - ( ) IV. Hedging Transactions ( ) - ( ) - ( ) 4.1 Cash Flow Hedge Foreign Net Investment Hedge ( ) - ( ) - ( ) V. Property and Equipment Revaluation Differences VI. Intangible Assets Revaluation Differences VII. Bonus Shares from Investments in Associates, Subsidiaries and Joint Ventures VIII. Translation Differences IX. Changes due to the Disposal of Assets (**) X. Changes due to the Reclassification of Assets XI. Effects of Changes in Equity of Investments in Associates XII. Capital Increase Cash Increase Internal Resources XIII. Share Issuance XIV. Share Cancellation Profits XV. Paid-in Capital Inflation Adjustment Difference XVI. Other (***) XVII. Current Year Income or (Loss) XVIII. Profit distribution ( ) ( ) - ( ) 18.1 Dividends paid ( ) ( ) - ( ) 18.2 Transfers to Reserves ( ) Other Ending Balance (I+II+III+ +XVI+XVII+XVIII) ( ) ( ) (*) The amounts for the Paid-in Capital Inflation Adjustment Difference and Actuarial Loss/Gain which is in the Other Reserves are presented under Other Capital Reserves in the financial statements. The accompanying explanations and notes form an integral part of these financial statements. 8

13 VI. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2015 (Amounts are expressed in thousands of Turkish Lira (TL)). Note CURRENT PERIOD PRIOR PERIOD (Section Five) (30/09/2015) (30/09/2014) A. CASH FLOWS FROM BANKING OPERATIONS 1.1 Operating Profit before changes in operating assets and liabilities ( ) Interest received Interest paid ( ) ( ) Dividend received Fees and commissions received Other income ( ) Collections from previously written-off loans and other receivables Payments to personnel and service suppliers ( ) ( ) Taxes paid ( ) ( ) Other ( ) Changes in operating assets and liabilities ( ) Net decrease in trading securities (2.306) Net (increase) / decrease in fair value through profit/(loss) financial assets Net increase / (decrease) in due from banks and other financial institutions ( ) Net (increase) / decrease in loans ( ) ( ) Net (increase) / decrease in other assets ( ) ( ) Net increase / (decrease) in bank deposits ( ) Net increase / (decrease) in other deposits Net increase / (decrease) in funds borrowed Net increase / (decrease) in payables Net increase / (decrease) in other liabilities I. Net cash provided from banking operations ( ) B. CASH FLOWS FROM INVESTING ACTIVITIES II. Net cash provided from investing activities ( ) ( ) 2.1 Cash paid for acquisition of investments, associates and subsidiaries Cash obtained from disposal of investments, associates and subsidiaries Purchases of property and equipment ( ) ( ) 2.4 Disposals of property and equipment Cash paid for purchase of investments available-for-sale ( ) ( ) 2.6 Cash obtained from sale of investments available-for-sale Cash paid for purchase of investment securities (189) (6.405) 2.8 Cash obtained from sale of investment securities Other ( ) ( ) C. CASH FLOWS FROM FINANCING ACTIVITIES III. Net cash provided from financing activities Cash obtained from funds borrowed and securities issued Cash used for repayment of funds borrowed and securities issued ( ) ( ) 3.3 Issued equity instruments Dividends paid ( ) ( ) 3.5 Payments for finance leases Other - - IV. Effect of change in foreign exchange rate on cash and cash equivalents V. Net increase in cash and cash equivalents (I+II+III+IV) (77.328) VI. Cash and cash equivalents at beginning of the period (V) VII. Cash and cash equivalents at end of the period (V) The accompanying explanations and notes form an integral part of these financial statements. 9